To The Moon

My Foolish Venture.

It wasn’t too long ago that I was “brainwashed” (not 100% but easily 80%) by the influx of SPACs and Wall Street hotter-than-hot enthusiasm towards them.

SPACs turned US listed stocks that I got involved and still exists:

• $Perella Weinberg Partners(PWP)$ : +82.17% returns.

• $Innoviz Technologies Ltd.(INVZ)$ : -87.06% returns.

• $Nano Dimension(NNDM)$ : -86.31% returns, courtesy of Cathie Wood.

• $Talkspace Inc.(TALK)$ : -75.07% returns.

• $MP Materials Corp.(MP)$ : +143.48% returns.

• $Playstudio Inc(MYPS)$ : -90.95% returns.

Then there were those that have reverse stock split that I just got wiped out as:

• I did not have sufficient shares for the reverse processing.

• I have “hardened & wisen” not to buy more to fulfill the reversal stock split.

They were ‘painful’ school fees to be paid because gone were my hard-earned monies.

SPACs History In Perspective.

Special Purpose Acquisition Companies (SPACs) were all the rage back in 2020 and into 2021.

Its “timely” appearance had been fueled by:

• Low interest rates [during Covid period].

• Retail enthusiasm.

• A shortcut for private companies to go public.

• Excessive liquidity swirling in the market, due to Fed’s quantitative easing (QE).

SPACs ‘golden’ period saw over 600 SPAC IPOs raising record capital; with the SPAC market peaked in 2021 with approximately $163 billion raised.

In early 2021, US regulator - the US Securities and Exchange Commission (SEC), finally began to noticeably scrutinizing SPACs.

It issued public statements around March 2021 expressing concerns about (1) conflicts of interest, (2) disclosure accuracy, (3) due diligence, and (4) accounting issues related to SPACs.

By December 2021, ex-SEC Chair Gary Gensler publicly highlighted concerns about SPAC transactions and directed staff to propose new rules to address these issues.

These proposed rules were formally issued for public comment in March 2022.

Failure of US SEC to nip SPACs lax & unregulated listings’ guidelines in the bud and its sudden increased scrutiny resulted in investors’ redemptions surged.

By 2023, roughly 32% of SPACs issued between 2020 & 2022 had liquidated. Frenzy tapered off considerably by 2023, giving way to a more cautious & disciplined SPAC market.

Make no mistake though, the SPAC market did not completely vanish or cease to exist. Rather it shrank dramatically in terms of activity and investors enthusiasm.

Chamath Palihapitiya.

During SPAC boom of 2020-2021, venture capitalist Chamath Palihapitiya rose to prominence, earning the moniker "SPAC King" for his prolific use of these blank-check vehicles.

He has touted SPACs as a means to "democratize" access to high-growth technology companies for retail investors.

Under him, he has launched a series of investment vehicles that took 6 companies public and raised billions of dollars amidst a frenzy of market enthusiasm. (see below)

Chamath Palihapitiya’s SPACs - Analysis:

Venture with Hedosophia.

• The first and most prominent wave of Palihapitiya's SPACs was launched as a joint venture with Ian Osborne's Hedosophia, a partnership that united technologists and investors to target innovative technology companies.

• This series targeted high-profile, often consumer-facing companies, and was responsible for the deals that cemented Palihapitiya's public profile.

• Of the 6 SPACs (IPOA - IPOF) in this series, 4 successfully completed mergers, while 2 were ultimately liquidated.

Venture with Suvretta Capital.

• Subsequently, Palihapitiya partnered with Suvretta Capital to launch a new set of 4 SPACs.

• These were more narrowly focused, each targeting a specific subsector within the biotechnology industry: (1) neurology, (2) oncology, (3) organs, and (4) immunology.

• These subsequent 4 SPACs had a more troubled outcome as they were listed towards the tail end of SPACs-fever.

• 2 of the SPACs completed mergers with clinical-stage biotech companies, while remaining 2 were liquidated without finding a target.

Aftermath Reality.

• Of the SPACs that completed mergers “successfully”, (eg. Virgin Galactic, Opendoor, and Akili Interactive), actual revenue and profitability figures have massively fallen short of initial forecasts by orders of magnitude.

• The aggressive, often pre-revenue projections,(permissible under the looser regulatory framework for SPACs compared to traditional IPOs), were a key driver of the initial hype but proved to be fundamentally unreliable.

• The sole exception is SoFi Technologies Inc that peak at $25 per share on 29 Jan 2021; has finally reached the summit again, after a long 4 years on 25 Aug 2025.

Latest Update.

• As of mid-2025, 5 of 6 Palihapitiya's de-SPACed companies have seen their market capitalizations plummet, with share prices down between 70% & over 98% from their post-merger starting points.

In conclusion.

The core theme emerging from SPACs listing is:

• The profound and systemic disconnect between the financial projections marketed to investors during the SPAC process.

• And the subsequent operational and financial reality of the de-SPACed entities.

Secondly, the legacy of Chamath Palihapitiya's SPAC gambit:

• Is not one of democratizing wealth.

• Rather a cautionary tale of (i) speculative excess, (ii) promotional hype, and (iii) structural flaws of financial instruments.

For the sophisticated investor, this saga provides critical lessons in due diligence:

• Necessity of scrutinizing projections.

• Understanding sponsor incentives.

• Prioritizing fundamental quality of underlying asset over charisma of its promoter, above all.

Why The Recount ?

Why the walk through memory lane ?

Well, the former executive at AOL and Meta Platforms turned billionaire venture capitalist (VC) is backed after lying “low” for about 3 years.

Recently, Palihapitiya the charismatic ‘smooth’ talker, is trying to reignite the conversation with a new prospectus for his latest $250 million blank check company — American Exceptionalism Acquisition Corp.

Details are limited at the moment, but Palihapitiya has hinted at the kinds of businesses he's targeting.

What is American Exceptionalism Acquisition Corp ?

In the S-1 filing for American Exceptionalism Acquisition Corp., Palihapitiya outlines 4 core pillars he believes are essential to US competitiveness:

• Artificial intelligence (AI).

• Decentralized Finance (DeFi).

• Defense.

• Energy production.

Besides looking like broad, boilerplate themes, can readers detect a unifying thesis that ties together some of the biggest secular growth opportunities underpinning US economy?

Currently, US economy is experiencing something akin to the Industrial Revolution, all thanks to the booming impacts of AI.

As with any megatrend comes significant tradeoffs.

The Power Drain.

The most pressing challenges for AI, lie not in (a) software development or (b) infrastructure manufacturing.

It is the strain on US power grid.

Hyperscalers like MSFT, GOOG, AMZN, META, ORCL, & OpenAI are investing hundreds of billions into data centers, each requiring massive amounts of electricity to operate at scale.

Simultaneously, the US government is moving aggressively with initiatives like Project Stargate, a $500 billion domestic infrastructure program designed to establish US's digital transformation.

Against this backdrop, Palihapitiya might be eyeing a start-up to sit at the intersection of his 4 pillars.

Amperon - Potential Takeover ?

According to Motley Fool post, Houston-based Amperon could be the natural fit for Palihapitiya's American Exceptionalism SPAC.

How So ?

Amperon functions as an operating system for the power grid.

It offers AI-powered software that:

• Delivers real-time intelligence to utilities, energy traders, and large power buyers.

• Enables decision-makers to forecast demand, renewable output, and wholesale prices with greater precision.

• Addresses some of the most pressing challenges in US energy economy.

In short, Amperon can be thought of as the Palantir of climate tech.

Parallelism.

(1) App’s platform.

PLTR has Artificial Intelligence Platform (AIP) that :

• Synthesizes massive volumes of unstructured data.

• Transform data and turns them into actionable insights for government agencies and large private enterprises.

Amperon could apply similar methodology to US grid to translate fragmented inputs, from (1) weather patterns or (2) anomalies in demand surges, into a unified model for energy stakeholders.

(2) Collaboration / Partnership.

Palantir in its early days have lean on collaborations / partnerships, putting itself out there in the commercial world, trying to get a foot jammed in the door.

And it continues to do so for the benefits outweigh perceived ‘risks’. (see below)

In similar fashion, Amperon has also built strategic collaborations with:

• Microsoft.

• National Grid.

• Acario (part of Tokyo Gas).

Like PLTR’s early contracts, these partnerships have the potential to deepen and expand over time -- embedding Amperon's tools more firmly into data workflows.

Both Amperon and Palantir demonstrate how AI-driven software layers can evolve into indispensable infrastructure.

Where Palantir dominates defense & enterprise intelligence, Amperon is carving out a parallel role capturing energy, climate, and grid optimization.

As energy touches every sector, Amperon's reach extends even further.

Its intelligence platform could support crypto and DeFi protocols, where mining depends on reliable power sources, and strengthen defense applications.

“Resilient energy” sources are critical to national security, suggesting Amperon's total addressable market (TAM) is far broader than it might initially appear.

According to Motley Fool:

• Ultimately, this vision aligns almost perfectly with the ethos of Palihapitiya's new SPAC.

• That is backing companies at the intersection of AI, defense, DeFi, and energy.

• All rolled up and packaged into a compelling opportunity reshaping conscious capitalism.

My viewpoints: (mine only)

I have researched and found that :

• Amperon is an existing company in the US.

• It was founded in 2017 and headquartered in Houston, Texas.

• It is a leading provider of AI-powered energy forecasting and analytics.

• It serves utilities, power producers, and commercial customers across the US and has recently expanded internationally.

• Amperon is not publicly listed.

• It remains a privately held entity, raising capital through multiple venture funding rounds, such as Series A & Series B.

• As of August 2025, it has not announced an IPO or stock market listing.

My take is to approach the new SPAC with measured optimism, while keeping Palihapitiya's history of stewarding outside capital at the forefront of investor’s thesis.

American Exceptionalism's converging focus on emerging themes across AI, defense, crypto, and energy might position it as a unique opportunity potentially poised for explosive growth.

More importantly, smart investors must understand that promise and hope are never true substitutes for prudent, disciplined investing.

This time round Chamath Palihapitiya will have to bring his A-game to the table to convince whichever firm he plans to merge will be a guaranteed success. (see below)

If SOFI, Palihapitiya’s only successful de-SPAC, is an example, it shows there will always be a storm before the rainbow appears, if it’s a good company. So, no rush Pleeze !

Remember to check out my other posts. (See below). Help to Repost ok, Thanks.

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• Do you think Amperon is to energy sector what PLTR is to AI ’?

• Do you think something “good” will come out of Palihapitiya's new American Exceptionalism Acquisition Corp OR is it another revenue generating hocus-pocus to enrich himself ?

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